Cambridge was in the grip of a new Red scare yesterday as an investigation led by Mayor Lyons pointed to a Dunster Street cellar as the center of a Communist organization, propagandizing school children with the end of enrolling them in the Young Communists League. Police believed that Harvard undergraduates were among the leaders of the movement.

Sergeant Thomas McAuliffe, in charge of the police investigation, reported last night that little progress on tracking down the leaders of the organization has been made yet. "They all use false names," he said.

He added that the police would have no grounds for prosecution unless literature specifically inciting to violence were found. "As yet we haven't found any of that," he stated, expressing his belief that Harvard men are involved.

Roger O'Sullivan, Central Vocational School teacher who started the search when he found Communist brochures being distributed by a 16-year-old negro boy, yesterday told the CRIMSON that he didn't believe that the propaganda was widespread.

In a letter to Mayor Lyons, David Grant, Secretary of the YCL, yesterday denied that the League was responsible for distributing the literature and that Harvard men are "in or at the head of" the League.